Questor Insurance News

Demand for air travel is sky-high

Improving figures for global passenger traffic show there is a stronger demand for air travel, according to the International Air Transport Association (IATA).

The latest data for November shows demand at its highest level of nine months, which is reflective of improved wider economic conditions.

Total revenue passenger kilometres (RPKs) – calculated by multiplying the number of revenue-paying passengers aboard the aircraft by the distance travelled – rose by 7.6% when compared to November 2015.

November international passenger demand also saw an increase of 8% when compared to the previous year, with airlines in all regions recording growth.

Total capacity also climbed 6.8% and is set to continue to grow throughout 2017 as airlines look to expand their fleets – Indian budget airline SpiceJet has just ordered 100 new Boeing planes for example.

European carriers saw demand increase by 8.3%, partly driven by great prices to popular destinations such as Tenerife, Spain and Eastern Europe.

Budget airline Ryanair has looked to tap into the growing demand for European travel, with the addition of nine new flight destinations, including Naples, Copenhagen, Grenoble and Cagliari – capital of the popular Italian holiday destination Sardinia.

The figures show that despite political instability in several regions across the globe, demand for flights has continued to grow.

The Middle East was found to have posted the strongest growth in international passenger demand, recording a 12.2% increase in November.

The region has looked to cut cost for travellers by making use of the more economical Airbus A380, with Emirates operating a huge service between Dubai and Doha, while Etihad has added an extra service between Abu Dhabi and New York.

“Travel has never been more accessible—with great fares, many options and more destinations,” explained IATA Director General Alexandre de Juniac.

He added that the industry has responded well to shocks to increase its resilience and has predicted another “solid year of collective profitability” in 2017.

If you’re thinking of travelling abroad this year, be sure to organise your worldwide travel insurance in advance.